【IISDADA】2024盧旺達咖啡行業(yè)負責任投資案例研究Mahembe咖啡

RESPONSIBLEAGRICULTURALINVESTMENTCASESTUDY

MahembeCoffee

Acherryproducer,greenbeanprocessor,andtraderinthe

Rwandancoffeesector

smallholdersafetyNetupscalingprogramme

lISD

InternationalInstituteforsustainableDevelopmnent

ii

MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

?2024SmallholderSafetyNetUpscalingProgramme

PublishedbytheInternationalInstituteforSustainableDevelopmentThispublicationislicensedundera

CreativeCommonsAttribution-

NonCommercial-ShareAlike4.0InternationalLicense

.

AboutADAandtheSSNUPprogramme

Appuiaudéveloppementautonome(ADA)isinvolvedininclusive

financeinAfrica,LatinAmericaandAsiaandfocusesonthreemain

topics:youthentrepreneurship,agriculturalandforestryvaluechains

andaccesstobasicservices.Theseactivitiesaddressthreetransversal

themes:climatechange,genderandtheuseofdigitaltechnologies.ADAisthecoordinatoroftheSmallholderSafetyNetUpscalingProgramme(SSNUP),a10-yearprogrammewhichaimstostrengthenthesafetynetsof10millionsmallholderhouseholdsthroughtechnicalassistanceand

investmentinagriculturalvaluechains,resultinginanimprovedwell-

beingof50millionlow-incomepeople.FundedbytheSwissAgencyforDevelopmentandCooperation,theLiechtensteinDevelopmentService(LED)andtheLuxembourgDirectorateforDevelopmentCooperationandHumanitarianAffairs,SSNUPworksasafacilitytoco-finance

thetechnicalassistanceprojectsofimpactinvestorsactiveinthefield.ADAensuresthecoordinationaswellastheknowledgemanagementcomponentofthewholeprogramme.

InternationalInstituteforSustainableDevelopment

TheInternationalInstituteforSustainableDevelopment(IISD)is

anaward-winning,independentthinktankworkingtoaccelerate

solutionsforastableclimate,sustainableresourcemanagement,

andfaireconomies.Ourworkinspiresbetterdecisionsandsparks

meaningfulactiontohelppeopleandtheplanetthrive.Weshinealightonwhatcanbeachievedwhengovernments,businesses,non-profits,

andcommunitiescometogether.IISD’sstaffofmorethan200peoplecomefromacrosstheglobeandfrommanydisciplines.WithofficesinWinnipeg,Geneva,Ottawa,andToronto,ourworkaffectslivesinmorethan100countries.

IISDisaregisteredcharitableorganizationinCanadaandhas501(c)(3)statusintheUnitedStates.IISDreceivescoreoperatingsupportfrom

theProvinceofManitobaandprojectfundingfromgovernmentsinsideandoutsideCanada,UnitedNationsagencies,foundations,theprivatesector,andindividuals.

MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

June2024

WrittenbyHafizMirzaandDuncanPringleCover:Womencollectingcoffeecherries.

HeadOffice

39rueGlesener

L-1631Luxembourg

Tel:+3524568681

Email:info@ada-microfinance.lu

Website:

X-TWITTER:@adamicrofinance

HeadOffice

111LombardAvenue,Suite325Winnipeg,Manitoba

CanadaR3B0T4

Tel:+1(204)958-7700

Website:

X-TWITTER:

@IISD_news

MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

iii

Acknowledgements

ThiscasestudywouldnothavebeenpossiblewithoutthecooperationandsupportofMahembeCoffee’smanagingdirector,assistantdirector,andstaff.

SpecialthankstoWillyGihozoRukemamunzi,whoagreedtoassistinpilotingtheCFS-RAIToolforAgribusinessbasedontheiroperations.Fullaccesstomanagementandstaffwasinvaluableforthepurposeofdevelopingacasestudytoillustratethescoringdimensionsofthetoolandtoidentifythetype,scale,andnuanceofimpactsanagriculture

valuechainactorhasonstakeholders.

Wealsothankthecompanyforthetimeandresourcesdedicatedto

supportingtheworkofthefieldteam.Weespeciallythankthecoffee

washingstationmanager,farmers,streetvendors,andotherstakeholdersforsharingtheirinsightsandexperiences.

HafizMirzaandDuncanPringlewereresponsibleforthecasestudy,includingtheresearchmethodology,analysis,andfinalisation.DuncanPringleconductedthein-countryfieldwork,andJosephineNdamageprovidedthefieldtranslationservices.

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MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

ProjectDescription

TheSmallholderSafetyNetUpscalingProgramme(SSNUP)aimstostrengthensmallholderhouseholders’safetynetssustainably.Thiswillbeachievedbyfosteringtheadoptionofmoreresponsibleandsustainablepracticesamongagriculturalvaluechainactors(AVCAs)—i.e.,

agribusinesses—byco-financingtechnicalassistanceprojectsandsupportingtheconductingofcasestudiestoanalyseAVCAs’performanceandcompliancewiththeCommitteeonWorldFoodSecurity’sPrinciplesforResponsibleInvestmentinAgricultureandFoodSystems

(CFS-RAI).

AVCAsarecriticalplayersinachievingthegoalsofCFS-RAIandincludeproducers(of

crops),processors,andtraders.FortheSSNUPcasestudies,theyalsoincludeservice

providers,forinstance,organisationsofferingtechnicalservicestogrowersorsupportto

vulnerablegroups,suchaswomenandyouth.AVCAs’investmentintheagriculturaland

foodsectorscanplayatransformativerole,enablingtheadoptionanddisseminationofnewtechnologies,buildingmarketsandsupplychainlinkages,andcontributingtolocaleconomiesandcommunities.InvestingresponsiblycanbeenhancedbyAVCAsaligningpolicies,plannedoperations,andpracticeswiththeCFS-RAI.

TranslatingtheCFS-RAIPrinciplesintopracticalactionbyagribusinessesrequiresguidanceandtoolsforstakeholders—suchasfinancialinvestorsandtheAVCAsinwhichtheyinvest—whowishtoincorporatethemintopolicies,regulations,andbusinesspractices.Casestudiesareonesuchsourceofguidance.TheyprovideexamplesofAVCAsthathavesoughttoput

responsibleinvestmentprinciplesandsocialbusinessconductintoeffectthroughconcrete

practicesandperformanceandoutcomeindicators.Suchagribusinesses’journeysindoing

this(includingtheproblemstheyface,thesolutionstheyfind,andtheperspectiveoffarmers,communitiesandotherstakeholdersontheresults)provideguidance,insight,andlessonstootherAVCAstakingthesamepathtoresponsibleinvestment.

ThiscasestudyofMahembeCoffee,acherryproducer,greenbeanprocessor,andtraderinRwanda,isoneinaseriesofRAIcasestudiesconductedbyIISDforSSNUP,incooperationwithADA.Thecaseschosenaredrawnfromseveralsegmentsoftheagricultureandfood

sectorsandaimtoanalyseAVCA’sperformanceandcompliancewiththeCFS-RAI.

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MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

ExecutiveSummary

Agriculturalvaluechainactors(AVCAs)—agribusinesses—arecriticalplayersinachievingthegoalsoftheCommitteeonWorldFoodSecurity’sPrinciplesforResponsible

InvestmentinAgricultureandFoodSystems(CFS-RAI),andincludeproducers(ofcrops),processors,andtraders.AVCAs’investmentintheagriculturalandfoodsectorscanplayatransformativerole,includingenablingtheadoptionanddisseminationofnewtechnologies,buildingmarketsandsupplychainlinkages,andcontributingtolocaleconomiesand

communities.InvestingresponsiblycanbeenhancedbyAVCAsaligningpolicies,plannedoperations,andpracticeswiththeCFS-RAI(orRAIforshort).

MahembeCoffeewasselectedforthiscasestudyjointlywithAlterfin,animpactinvestor

participatingintheSSNUPprogramme.Thecompanyisrepresentativeofasmalland

medium-sizedenterpriseoperatingalongelementsofthevaluechainintheRwandancoffeeindustryasacherryproducer,greenbeanprocessor,andexporter,sellinggreenbeansto

specialtycoffeeroasters.Thecompanywasestablishedin2010byJustinMusabyimana,whoisoriginallyfromtheMahembesectorintheWesternDistrictofRwanda,returningafterthe1994genocidetoestablishawetmillonhisfather’sfarm.

Mahembefacesseveralchallengesandconstraints:themostpressingarefindingwell-payingmarketsforspecialtybeans,controllingsupply(thereisaconcernoverageingfarmers,withanestimated70%ofsuppliersagedover60),andassuringqualitytomeetnichecoffee

sectorrequirements.Accessingthefinancialresourcesrequiredtooperateatscaleisalsoachallenge.

Thecompany’smissionistobecomearegionalleaderinqualitycoffeeandconsistently

differentiateitselfbydeliveringexclusivelythebestproductthroughacompletely

sustainableandtransparentvaluechainthatsignificantlycontributestobetteringthelivesoffarmers.

Thebusinessnowhas35haunderproduction,withtwocoffeewashingstationsinthewestofRwandaprocessingabout750tonnesofcherryannually.Inadditiontoitsownfarms,

over930smallholderssupplycherrytoitscoffeewashingstations.ItsclientsaremainlyintheUnitedStates,theUnitedKingdom,France,andSouthKorea.

Thecompanyiscontrolledbyaboardoffive(includingtwowomen).Twoseniormanagersmanageday-to-dayoperations,thefounderasmanagingdirectorandonesonasassistantdirector.Thereareninepermanentemployees(includingseniormanagement),fourof

whomarewomen;eightemployeesareunder35.Thecompanyalsoemploys58seasonalworkers,32ofwhomarewomen.

ThecompanyhassomefarmerscertifiedthroughStarbucks’C.A.F.E.PracticeandtheRainforestAlliance.

Mahembe’sactivityinRAIwasassessedthroughbothonlineinterviews(primarilywiththecompany)andin-countryfieldwork(withthecompanyandmanystakeholdergroupssuchasemployees,farmers,women,andyouth)usingdedicatedinstruments.Answersfromthe

MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

vi

companyandstakeholderswereanalysedtoassesstheAVCA’sRAIcomplianceacrosssevendimensions.1Thedimensionsarelistedinthetablebelow,withtheaveragelevelofRAI

complianceindicatedintherightcolumn.

TableES1.Summaryfindings

Dimension

Levelofcompliance

Strategyandaccountabilityonresponsibleagriculture

ThelevelofRAIcomplianceishighinthisdimension.

Forexample,thecompanyhasadocumentedbusiness

strategythattargetsspecifickeyperformanceindicators,severalofwhichrelatetoresponsibleinvestmentand

businessconduct.Progressisassessedandreportedonevery6months.

Inclusiveandtransparentstructure

ThelevelofRAIcomplianceishighinthisdimension.Forinstance,thecompanyholdstwoformalconsultationswithfarmers,beforeandaftertheseason,toplanandreviewresultsandoutcomes.Thecompanyalsohas

aworkercommitteethatmeetswithmanagement,

enablingworkerstoraiseissuesandresolvegrievances.

Safeandresponsible

agricultureandfoodsystemsandoperations

ThelevelofRAIcomplianceishighinthisdimension.Inadditiontoemploymentcreatedandincomegeneratedthroughthecompany’soperations,italsocontributestofoodsecurityandnutritioninotherways.Forexample,itprovidesfreefruittreeseedlingsasshadetreesfor

coffeeandofferstechnicalsupport.However,ithasnoformalisedpoliciesandproceduresonfoodsafetyapartfromcompliancewithcoffeeproductioninspectionsbytheauthorities.

Environmentallysustainableprocessesandproducts

ThelevelofRAIcomplianceishighinthisdimension.

Thecompanyisawareoftheenvironmentalrisksof

waterpollution,soilerosion,anddeforestationandhas

undertakenmeasurestoensurenopollutedwaterflows

backintoriversandhaserosioncontrolpracticesinplace.Thecompanyistakingmeasurestoensurechemical

useisdoneresponsiblyandusesonlythosechemicalsapprovedbytheauthorities.

1Thesedimensions—reflectedintheprincipalresearchinstrumentusedfortheAVCAinterviews—werechosento(broadly)correlatewithprimarybusinessfunctions(strategy,finance,humanresourcesetc.).Inotherwords,thequestionsweredirectlyintelligibleforbusinesses.Atthesametime,theactualquestionsasked(e.g.,practicesreferredto)werecarefullymappedtospecificCFS-RAIprinciples.Forexample,thestrategyandaccountabilitydimensionmainlyrelatestoissuescoveredinCFS-RAIPrinciple10:“assessandaddressimpactsandpromote

accountability.”Similarly,thedimensiononresponsibleprocesses,products,andservicesencompassesissues

underCFS-RAIPrinciple1(“contributetofoodsecurityandnutrition”)andPrinciple8(“promotesafeand

healthyagricultureandfoodsystems).Ofcourse,thereisnoone-to-onecorrespondencebetweendimensionsandCFS-RAIprinciples.

MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

vii

Dimension

Levelofcompliance

Responsibletreatmentofstakeholders

Theorganisationscoreismiddlinginthisdimension.Thecompanyhasresponsibleandfaircontractingpractices,whichareconfirmedbyfarmers,buttherearenoformalsystemsinplace.Partnershipisseenascentralto

arrangementsbecauseofthetrustrelationshipsbuiltupbythefounderwithfarmersandthecommunity.Mahembeconsiderstenurerightstobesecureinlawthroughagovernmentregistrationsystem.

Responsiblehumanresourcedevelopment

ThelevelofRAIcomplianceisrelativelyhighinthis

dimension.Mostemployeesinterviewedweresatisfied

withtheirjobsandfeltsecure,althoughsomementionedthattheydidnothaveaformalletterofengagement.

Thecompanypaysabout5%abovetheminimum

wageprescribedinlaw.Thecompanyhasahighlevelofparticipationofwomen(44%ofpermanentand55%

ofseasonalstaff)andyouth(89%ofpermanentstaff).Humanresourcedevelopmentremainsinsufficient,withnoprofessionalmanagementtraininginplace.

Financialtransparencyandbenefitsharing

ThelevelofRAIcomplianceisrelativelyhighin

thisdimension.Asaprivatecompanywithasingle

shareholder,thereisnolawrequirementthatthe

company'sresultsbepubliclydeclared.However,the

companyisactiveinsupportingfarmersandthe

community,includingbuyinguniformsfor500school

children,assistingyouthinbecomingfarmers,andhelpingcommunitiesbuildroadstoimprovelocaltransport.

Source:Authors.

Thecompany’shighlevelofcompliancewithresponsiblebusinessconductisnotanaccidentandofferspotentiallessonsforotheragribusinesses.Thefoundermadeaconsciouschoicetosetveryclearobjectivesfordevelopingthebusinessinasociallyresponsiblewaytobenefitthebroadercommunity.Respectinghumandignityandresponsivenesstothedevelopmentneedsofthecommunitywerecentraltothecompany’sapproach.

However,whileRAIalignmentisstrong,itissustainedprimarilythroughthevaluesandactionsofasoleshareholderasthevisionaryfounder.Consequently,thereisariskthatasthebusinessgrowsandevolves,withtheparticipationofnewshareholdersandashifttothenextgenerationofowners,thecompany’scommunity-anddevelopment-centricbusinessculturemaywane.

Acentralrecommendation,therefore,isthatamoreformalapproachtodocumentingpoliciesandproceduresshouldbeimplementedtoentrenchdevelopment-orientedoperational

principlesmorefully,includingthoserelatingtocommunityandyoungfarmerdevelopmentsupport.Thiswouldhelporientateandguidenewshareholdersandstaffandencourage

continuityinRAIcompliance.Thecompanycouldconsiderdevelopingcherrypricingmodelswithamoredirectlinktogreenbeanpricesandencouragebuyerstocontractearliertoenablesuchapricingsystem.Governments,investors,andothersalsohaveasignificantroletoplayinsupportingcompaniessuchasMahembe.

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MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

TableofContents

IntroductiontotheRAICaseStudiesandMethodology 1

1.0BackgroundandContext 4

TheCoffeeIndustryinRwanda 4

CoffeeCherryFarminginRwanda 5

TheRoleoftheNationalAgriculturalExportDevelopmentBoard 5

2.0ProfileoftheCompany 7

GeneralInformation 7

OperationalStructure 7

Certification 8

Challenges 8

3.0AssessmentofMahembeCoffee’sBusinessPracticesAlignmentWithCFS-RAIand

ImpactonLocalStakeholders 9

TheAVCA’sCompliancebyDimension 10

4.0RecommendationstoInvestees,Investors,andOtherStakeholders 24

Mahembe’sApproachtoInvestingResponsiblyinAgriculture 24

References 28

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MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

AbbreviationsandAcronyms

AVCAagriculturalvaluechainactor

CFSCommitteeforFoodSecurity

CFS-RAICommitteeforFoodSecurityPrinciplesforResponsibleInvestmentin

AgricultureandFoodSystemsCWScoffeewashingstation

hahectare

kgkilogram

MNEmultinationalenterprise

NAEBNationalAgriculturalExportDevelopmentBoard

RAIResponsibleAgriculturalInvestment

RWFRwandanFranc

SMEsmallandmedium-sizedenterprise

SSNUPTheSmallholderSafetyNetUpscalingProgramme

USDUnitedStatesdollar.InthisreportUSD1.00=RWF1,200

UPIUniqueparcelidentifier.ThelandtitleidentifierinRwanda,whichiscomposed

ofcodesdesignatingtheprovince,district,sector,andcellofwhereaparceloflandislocated.

1

MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

IntroductiontotheRAICaseStudiesandMethodology

TheSmallholderSafetyNetUpscalingProgramme(SSNUP)includesmanyimpact

investors,suchasAgDevCo,Alterfin,Bamboo,GrameenCréditAgricoleFoundation,

Incofin,Oikocredit,ReponsAbility,SIDI,andSymbiotics.TheSSNUPaimstostrengthensmallholderhouseholders’safetynetssustainably.Thiswillbeachievedbyfosteringthe

adoptionofmoreresponsibleandsustainablepracticesamongagriculturalvaluechain

actors(AVCAs)byco-financingtechnicalassistanceprojectsandsupportingtheconductingoftheRAIcasestudiestoanalysetheirperformanceandcompliancewiththeCommittee

onWorldFoodSecurity’sPrinciplesforResponsibleInvestmentinAgricultureandFoodSystems(CFS-RAI).2

AVCAsarecriticalplayersinachievingthegoalsofCFS-RAI,andincludeproducers(of

crops),processors,andtraders.FortheSSNUPcasestudies,theyalsoincludeservice

providers,forinstance,offeringtechnicalservicestogrowersorsupporttovulnerable

groups,suchaswomenandyouth.AVCAs’investmentintheagriculturalandfoodsectorscanplayatransformativerole,includingenablingtheadoptionanddisseminationofnew

technologies,buildingmarketsandsupplychainlinkages,andpotentiallycontributing

tolocaleconomiesandcommunities(e.g.,throughemploymentandincomegeneration).

InvestingresponsiblycanbeenhancedbyAVCAsaligningpolicies,plannedoperations,andpracticeswiththeCFS-RAI.

ThiscasestudyispartofaseriesofcasesonAVCAs,drawnfromvarioussegmentsofthe

agricultureandfoodsectors,aimedatanalysingtheirperformanceandcompliancewiththe

CFS-RAI.TranslatingtheCFS-RAIPrinciplesintoactionrequirespracticalguidesandtoolsforstakeholders—suchasfinancialinvestorsandAVCAsinwhichtheyinvest—whowishto

incorporatethemintopolicies,regulations,andbusinesspractices.Oneaimofthecasestudiesistohelpprovideorimprovethesetools,suchastheRAIToolforAgribusiness(Box1).

Themethodologyforthecasestudyprocesscomprisedfourphases:

PhaseI.Pre-fieldworkinformationcollection

Thisinvolvedonlinemeetingswithrelevantmembersofthemanagementteamtocollect

?backgroundinformationontheAVCA.Thiscomprisedgeneralcharacteristics,suchaslocationofoperations,valuechainsegment/activities,scaleofoperations,ownership,operationalstructureetc.

?informationontheAVCAskeymanagementandoperationalprioritiesandpractices,especiallythoserelatedtoCFS-RAI.Asetofoutcomeindicatorswerealsocollected.

2RAIreferstothePrinciplesforResponsibleInvestmentinAgricultureandFoodSystems(CFS-RAI),whichwereendorsedbytheCommitteeonWorldFoodSecurity(CFS)in2014.Itisacomprehensiveframeworkonwhatconstitutesa“responsibleinvestment”inagribusiness.

MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

2

Guidedself-assessment,utilisingtheRAIToolforAgribusiness(Box1),wasappliedtocollectthisinformationduringaseriesofinterviews.

PhaseII.Fieldwork

TheresearchteamvisitedtheAVCA,includingselectedoperationsandthelocalcommunity,for5–6days.Thisinvolvedfurtherclarifyingkeyrelevantmanagementandoperational

practicesandpriorities,aswellasassessingtheAVCA’sperformancevis-à-visstated

practices/measures(primarilythoserelatedtoCFS-RAIandsustainability).Interviews

withotherstakeholders,e.g.,farmers,localbusinessowners,financiers,informaltraders

etc.werealsoconductedtocross-checkinformationgainedfromtheAVCAandassess

thewiderimpactoftheAVCA’sactivityusingdedicatedsemi-structuredquestionnaires

developedtocollectinformationfromthevariousstakeholders.Priortothefieldwork,

AVCAswereprovidedalistofcategoriesofinterviewees,andtheAVCAmadearrangementsforinterviews,whichwereamixofgroupsandone-on-oneinterviewsusingstructured

questionnaire.

PhaseIII.Dataanalysis

Theresearchteamanalysedthedataandinformationgainedfromtheinterviewsand

fieldwork,compiledtheprincipalfindings,draftedthereport,anddiscussedthefindingswiththeAVCAandtheinvestor.

PhaseIV

Aninitialcasestudywasdraftedtotestwiththecompany.Afterdiscussionwiththe

company,includingclarificationsandotherfeedback,amore“advanced”version(thisone)wasdraftedforpublication.

Box1.TheRAIToolforAgribusiness

GatheringinformationforthecasestudieswasconductedusingtheRAITool.As

specifiedbytheCFS,theRAIprinciplesremaingenericandhighlevel,makingitdifficultforAVCAstotranslatethemintotheirdailymanagementandoperations.

TheobjectiveoftheRAIToolistoprovideasetofspecificandmeasurableindicatorsthatassesswhetheranagribusiness’smanagementofitsoperations,practices,and

proceduresarecompliantorconsistentwiththeCFS-RAIPrinciples.TheRAITool

integratesRAIprinciplesintothemanagementandoperationalstructureofAVCAs

(decisionmaking,actions,procedures,andprocesses).ThismakesRAIprincipleseasierforAVCAstounderstandandapplyandmayultimatelyeasethemainstreamingofRAIkeyperformanceindicatorsintobusinessmanagementandperformancesystems.

Thetooliscomposedoffourmainparts:

?IDcardandscoping:Thesetwopartsarecompletedwithinformationonthe

agribusiness’profileandcharacteristics.Thisfacilitatesafilteringprocesssothatbusinessesareonlyrequiredtorespondtorelevantquestionsontheirpractices

andoutcomemeasures.

MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

3

?Practices:Thispartcomprisesadetailedsetofindicators,overallgroupedby

seven“dimensions”thatbroadlyreflectbusinessfunctions.AnswersmaybeYes/No/Partially/NotApplicable,whichneedtobeexplainedorvalidated.Tomake

thetool(anddatacollected)helpfulforanalysis,decisionmaking,andprogress,detailedinformationontheconcretepracticesimplementedbytheAVCAis

requested.

?Outcomes:Thispartcomprisesalimitedsetofoutputsandoutcomesindicatorsontopicssuchasgovernance,employment,suppliers,andacompany’s

environmentalandclimate-impactfootprint.

Inaddition,thetoolalsoprovidesdashboardsshowinghowagribusinessesscoreintermsoftheirpracticesandoutcomesingraphicalform.

TheaimofthisapproachistocreateareferencetoolthatcanbeusedbyAVCAs,financialinvestors,andotherstoassessagribusinesses’compliancewithRAI;andtherebyfostermoreresponsibleandsustainablepracticesintheagriculturalandfoodsectors.Thelatestversionofthetoolisavailableonline(

/

publications/guide/responsible-agricultural-investment-tool-agribusiness

).

Since2021,thetoolhasbeendevelopedbytheInternationalInstituteforSustainableDevelopment(IISD)incollaborationwiththeComitéd’échange,deréflexionet

d’informationsurlessystèmesd’épargne-crédit(Cerise+SPTF).IISDisanindependentthinktankworkingtoacceleratesolutionsforastableclimate,sustainableresource

management,andfaireconomies.Cerise+SPTFisapioneerinsocialperformance

management,developingmanywell-knownsocialaudittoolstohelpfinancialserviceproviders,socialbusinesses,andimpactinvestorsachievetheirsocialmission.IISD

isleadingthecasestudyresearch,analysis,anddraftingofoutputs.Thenon-

governmentalorganisationAppuiauDéveloppementAutonome(ADA)coordinates

SSNUP,includingtechnicalassistanceprojectsandknowledgemanagementactivities,suchasthesecasestudies.

Source:IISD.

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MahembeCoffee:Acherryproducer,greenbeanprocessor,andtraderintheRwandancoffeesector

1.0BackgroundandContext

MahembeCoffee3waschosenforthiscasestudyafterdiscussionswithanimpactinvestor

participatingintheSSNUPprogramme.Thecompanyisrepresentativeofasmalland

medium-sizedenterprise(SME)operatingalongelementsofthevaluechainintheRwandancoffeeindustryasacherryproducer,greenbeanprocessor,andexporter.

Mahembefacesseveralchallengesandconstraints:themostpressingarefindingwell-payingmarketsforspecialitybeans,controloversupply(thereisaconcernoverageingfarmers;thecompanyestimatesthat70%ofsuppliersareagedover60)andassuringqualitytomeetnichecoffeesectorrequirements.Thissectionprovidesbackgroundonthesalientindustryand

businessenvironmentinwhichtheAVCAinthiscasestudyoperates.

TheCoffeeIndustryinRwanda

Thecoffeeindustryultimatelydependsontheproductionoffreshcherry,whichiswet

milledtoremovethemucilageatacoffeewashingstation(CWS),afterwhichitissun-driedtoparchment.4Alterna